LOLC to issue listed and unlisted Debentures - 03 Oct 2011

Lanka ORIX Leasing Company PLC (LOLC) will be issuing unsecured listed debentures upto a value of Rs. 1.0 Bn and a further unlisted debenture of Rs. 500 Mn. The managers to the issue will be First Capital Limited, while the trustee will be Bank of Ceylon.

These Senior, Unsecured, Redeemable, Rated Debentures will be for tenures of 4 years and 5 years and will carry semi annual interest coupons of 11.70% and 11.90% respectively.

These debentures have been assigned a national long term rating of A- (lka) by Fitch Ratings (Lanka) Ltd. The rating of A- indicates LOLC's high credit quality and strong payment capacity of financial commitments.

The funds raised through the debenture will be utilized to retire part of the company's short-term debt, thereby better aligning the maturity profile of LOLC's assets and liabilities and further strengthening the balance sheet structure of the company.

In addition to the current issue, LOLC as an innovative group of companies is also planning to issue listed debentures, open for international investors as well. This will enable LOLC to access a wider pool of funds, taking into consideration the strong relationship that LOLC maintains with its foreign funding partners and investment funds. LOLC has had track record investment relationships with several multilateral and bilateral funding partners who have partnered LOLC on its journey with long term funding, supporting the SME & micro lending of the group. LOLC's strong financial performance, sound risk management practices as well diversification to key growth areas of the national economy enables LOLC to attract investors to the issue. The debenture will provide investors with a sound investment, and the opportunity to share the successes of LOLC.

The LOLC Group intends to issue further listed debentures through its financial services subsidiaries in the near future to enhance growth of the Group's lending portfolio. The Group's total lending portfolio, consisting of leases, loans, hire purchases, factoring and pawning, grew by 67%, from Rs. 35.1 Bn to Rs. 58.4 Bn during the financial year ended March 2011.

The LOLC Group reported a Profit Before Tax of Rs. 8.3 Bn for the year ended 31st march 2011, with a 60% contribution to the groups profits coming from the financial services sector.

The LOLC Group has pioneered many financial products and services in Sri Lanka, providing timely and convenient access to finance for its clients, ranging from micro entrepreneurs and farmers to SME's and corporate clients.

LOLC Micro Credit Co. Ltd, the specialised agro and micro credit company of the Group increased its lending portfolio to Rs. 8.2 Bn for the year ended 31st march 2011, a growth of 106% when compared to the previous year.

The lending book of Lanka ORIX Finance Company Ltd. reported a growth of 133% during the year ended March 2011. The deposit base of the company, consisting of fixed and savings deposits, foreign currency deposits and Islamic deposits, increased by 72% over the previous year.




A Trustee Deed for the issuing of listed debentures was signed between the LOLC Group and Bank of Ceylon recently. From L-R (back row): Ms. Thanuja Jayawardene, Senior Associate, Nithya Partners; Ms. Chrishanthi Emmanuel, Company Secretary, LOLC; Ms. Darshini de Silva, Senior Manager, Corporate Finance, First Capital Ltd; Mr. Chandima Desinghe, Head of Capital Markets and Fund Management, First Capital Ltd; Mr. W. Y. Bandula, Chief Manager – Investments, Bank of Ceylon. From L – R (Front Row): Mr. P. A. Lionel, DGM – Investment Banking, Bank of Ceylon; Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC; Mr. Rohan Perera, Group Treasurer, LOLC; Mr. Sanjaya Kalidasa, Manager – Treasury, LOLC.


The Trustee Deed for the issuing of listed debentures is signed between Mr. P. A. Lionel, DGM – Investment Banking, Bank of Ceylon and Mr. Kapila Jayawardena, Group Managing Director/CEO, LOLC whilst Mr. Rohan Perera, Group Treasurer, LOLC (seated far right); Ms. Chrishanthi Emmanuel, Company Secretary, LOLC (Seated far left); Mr. Sanjaya Kalidasa, Manager – Treasury (standing far right), LOLC; Mr. W. Y. Bandula, Chief Manager – Investments, Bank of Ceylon (Standing 2nd from right); Mr. Chandima Desinghe, Head of Capital Markets and Find Management, First Capital Ltd (Standing 2nd from left); Ms. Darshini de Silva, Senior Manager, Corporate Finance, First Capital Ltd. (Standing far left); Ms. Thanuja Jayawardene, Senior Associate Nithya Partners (Standing left) look on.
All News
CONTACT
General Enquiries:
Phone : +94 11 588 0880
Fax : +94 11 286 5606
Email : lofin@lankaorix.com
Address : 100/1, Sri Jayawardenapura Mawatha, Rajagiriya, Sri Lanka.